How do I cancel my Timeshare Purchase?
If your are even asking the question:
"Should I cancel the purchase of the timeshare I just made from the developer"?
let us start by saying the answer is YES!
Do I need a reason to cancel my timeshare?
The fact that you are having ANY second thoughts about such a large purchase (and one that is very difficult to get out of) means without any doubts, you should cancel that purchase. Under no circumstances should you just "go ahead" with the purchase thinking that it truly is the deal of a lifetime, because even if you do the research and find out its exactly what you want, that same deal will be available for you from that same resort next week, next month, even likely next year. You however ONLY have one shot at cancelling the deal, and if you do not act on it you will be unable to back out of the deal.
Other valid reasons to rescind include:
- You can buy the exact same product from an existing owner on the resale market for between 0 and 15% of what you just paid.
- You might have felt pressured into making such a large purchase without having the time to do the research
- You may have made a bigger financial commitment than you are comfortable with now that you are home and have had time to think
- You may not know exactly what you purchased and how that timeshare works
- You may have financed your purchase at a very high interest rate
- or you may simply just have buyers remorse
The simple fact is there are a million valid reasons to cancel your purchase, and no valid reasons not to back out now and do your research until you are perfectly comfortable that you are making the right decision!
This is such an important detail, we actually created an entire youtube video to cover it! Check it out here:
If you are still skeptical about this being legitimate, you can check out this Active Online forum discussion thread that is a running tally of the hundreds of owenrs who have found TUG in time to successfully cancel their new Timeshare purchase and save millions of dollars! List of owners that have found TUG in time to cancel a new timeshare purchase!
What is rescinding a timeshare?
Rescinding is a completely legal way to cancel the purchase of a timeshare and get all of your money back, within a certain number of days. The number of days you have to rescind differs from state to state (see below). The right to rescind during a "cooling off period," is your legal right, and the developer can't change that, no matter what you may have been told or what you signed.
Your salesperson may have verbally asked you to promise not to rescind - all that means is that he was trying to manipulate you into giving up your legal rights! Neither the salesperson, or the developer, have any say about your right to rescind - this right is established by local law in each state and is not affected by any verbal promise not to rescind. Some salespeople in Mexico have even been known to ask buyers to sign away their right to rescind, but that isn't legal either. So even if you signed a paper stating that your don't have a right to rescind, or that there is no right of rescission in Mexico, you still DO have the right to rescind.
How long do I have to cancel my timeshare?
Great question, and it varies by state to state ranging from 3 days to 15 days (however the average is about a week), a list of the currently known rescission periods are broken down by state here: State Timeshare Laws and Info
note that the "state" law that applies is almost always the state in which the Timeshare was purchased in, not the state you live in.
Ok, so I am within that period, how do I cancel my timeshare?
Great question number two, you are on a roll! By law, in every sales contract (the one you signed and must have a copy of) must contain exact instructions on how to cancel your contract and will (should) also include the length of time one has to cancel. Oddly enough this section is many times buried and or hidden within your contract making it "less than obvious" for the owner to discover, ill let you draw your own conclusions on why that is.:
Once you locate these instructions you MUST FOLLOW THEM EXACTLY, you dont want to mess around here as you are generally risking thousands of dollars, and by the time you discover you made a mistake, your cancellation period is now over. Most of these instructions spell out that you must MAIL a note containing your personal information, along with the purchase information and a request to cancel the transaction. I have not heard of any that require anything substantial or complicated, so keep it simple and include only what is requested, you do not need to fill out an explanation or make any excuses, and by all means do NOT call the salesman and ask to cancel, they are the ones that talked you into buying, and will make every effort to get you to change your mind about cancelling!
Here is a very simple sample rescission note to use as a reference:
Gentlemen:
Regarding contract "123" for purchase of a timeshare at "ABC" resort. We are exercising our legal right to cancel this contract. We expect a full refund of our deposit of "$123." Do not make any additional charges to my credit card. Please confirm my legal rescission in writing.
Sincerely,
John Husband
Jane Wife
Thats it! nothing more is required, no explanation, no reasoning, no argument, no fuss, no complaints. You are merely required to exercise your right to cancel and thats it!
additional suggestions that may apply in certain situations:
- Along with the letter, send a copy of the main page of the contract.
- Be sure you send your rescission letter using the exact form of mail/communication stated in the instructions - you may be required to FAX or mail your rescission - follow these instructions exactly.
- If you are required to mail your rescission, make sure it is postmarked within the required time and that you get a return receipt when it's delivered.
- If you are required to FAX your rescission, make sure you keep a copy of the FAX receipt to document the date and time.
- If the rescission instructions require you to send a FAX, you should also mail a copy of your rescission papers via a trackable mail delivery service with proof of delivery.
- Make copies of everything you send - don't send any original documents.
- Expect your salesperson to try and talk you out of it. Don't get embroiled in a long discussions, just keep politely repeating, "I'm not interested."
- You may be required to return the owner's guide or other materials you got as a new owner upon request.
Ok I have done all that, now what?
Sit back and enjoy the relief of saving yourself from a multi Thousand dollar mistake! The resort is not under any obligation to keep you updated about the status of your rescission, nor are they likely to do so until it is all completed! In many cases they have up to 45 days to refund any money (ie a deposit) made by you, so just be patient if you followed the rules you will be all set!
While you wait We suggest reading as much info as you can on the TUGBBS forums and other Free advice articles in the TUG Advice Section. We suggest not making another purchase for at least a few months so you can ensure you are buying EXACTLY the timeshare you want, and that fits your needs. In most cases that will be completely different than what you were purchasing to begin with!
One fabulous suggestion we give all potential owners, is to RENT a timeshare at the location(s) you are interested in buying, this gives you all the benefits of ownership, and none of the obligations. After renting at the location if you are still interested in purchase, you can find what you want from an existing owner in the resale market for pennies on the dollar! You can see some of these amazing deals in our TUG Timeshare Marketplace!
We hope this will provide you with the information you need about Rescinding your Timeshare Purchase and welcome to TUG!!
For more information or assistance with rescinding your Timeshare purchase or any other Timeshare related question, visit us here on the free TUGBBS online forums where tens of thousands of other owners just like you can answer questions 24 hours a day! Timeshare owner discussion forums
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